Nigerian Breweries Soars as Investors React to Q1 Earnings
Nigerian Breweries Plc gained 13.1% in the equities market as equities investors reacted positively to the company’s improved earnings performance for the first quarter. The company’s unaudited earnings results showed the brewer bucked negative performance and delivered N44.53 billion in net profit in Q1.
The rally pushed Nigerian Breweries share price to N36.2 in the stock market as 15.418 million units valued at N555.571 million exchanged hands in the Nigerian Exchange trading platform.
The market value of Nigerian Breweries edged higher to N1.121 trillion, trading slightly behind its 52-week high. The brewer reported 69% year-on-year revenue growth, settling at N383.635 billion in the first quarter of 2025.
Management explained that the performance was driven by deeper market penetration, sustained innovation, strong commercial execution, and improved customer engagement.
Strategic pricing initiatives and enhanced supply chain efficiencies further contributed to the topliner expansion, according to Nigerian Breweries.
The brewer said despite Nigeria’s volatile macroeconomic environment marked by high inflation and constrained disposable income, the Company delivered a strong performance in the quarter, driven by a continued focus on agility, innovation, and disciplined execution.
Remarkably, the group operating profit rose by 238% to N85.265 billion, underscoring the Company’s relentless focus on cost discipline and productivity enhancement.
Costs of sales grew by 49.5% in the same period to settle at N217.068 billion from N145.241 billion in the comparable period in 2024.
Nigerian Breweries said the significant improvement in the operating profit reflects both volume and value growth, as well as the benefits from the business recovery and process optimisation initiatives undertaken in 2024.
The Group said it recorded a 186% increase in net profit, sustaining the return to profitability that started in the last quarter of 2024, and reflecting the full impact of financial restructuring and cost-saving initiatives implemented as part of its business recovery plan.
Importantly, Nigerian Breweries said its net finance expenses dropped by 83%, a direct result of the prudent utilisation of proceeds from the 2024 Rights Issue, which were used to reduce foreign currency liabilities and optimise the Company’s capital structure.
This substantial reduction in finance costs has materially strengthened the bottom line and enhanced financial resilience.
The group explained that the strategic initiatives introduced in 2024, including portfolio optimisation, rightsizing of operations, and disciplined working capital management, continue to yield strong results.
NB said it is firmly on track in the execution of its turnaround plan, including restoring long-term profitability and building a solid foundation for sustainable growth.
In a statement, the board expresses appreciation to shareholders for their unwavering support, particularly on the rights issue, which was 92% subscribed. “Their commitment has been instrumental in repositioning the company for long-term success and growth”, Nigerian Breweries said.
Projecting further, Nigerian Breweries said while the operating environment remains uncertain and the low season approaches, the company is confident of its ability to navigate ongoing macroeconomic pressures.
With a clear focus on agility, innovation, the integration of Distell, and financial discipline, the company remains well-positioned to drive continued growth and deliver value to all stakeholders. GCR Affirms Dangote Cement AA+ (NG) Rating
